• Madrid has consolidated its position as Europe’s primary air cargo gateway to Latin America, with strong network connectivity and targeted infrastructure investment enabling rapid growth in volumes, particularly for time-sensitive and high-value goods.

• IAG Cargo is scaling its Madrid hub around perishables, e-commerce and pharmaceuticals, combining frequent wide-body capacity with specialised temperature-controlled facilities to handle fast-moving, sensitive shipments with minimal dwell time.

• The broader shift is structural: Latin American trade is moving up the value chain, driving demand for premium airfreight services and pushing hubs like Madrid to compete on speed, cold chain capability and operational precision rather than sheer scale.

Madrid is the critical cargo gateway between Latin America and Europe. The Spanish capital is seeing sustained growth in volumes from the region, supported by strong connectivity and infrastructure tailored to time-sensitive cargo. For IAG Cargo, those changes reflect a broader transformation across global airfreight.

“Madrid is the primary hub between Europe and Latin America, and plays a central role within our wider global network. More flights depart from Madrid to Latin America than from any other city in Europe, making it the primary off-point for cargo as well. Through Iberia, we are the largest airline at that airport, and therefore we play a very significant role in movements of cargo between Europe and Latin America,” said David Shepherd, Chief Executive Officer at IAG Cargo.

As Latin America emerges as a more prominent source of high-value cargo, Madrid is becoming central to how those flows enter and move across Europe.

“In recent years, we have invested more than €2 million in our hub in Madrid, including the installation of new castor decking and the expansion of our perishables facility to enhance both the handling capability and quality”, explained Shepherd.

Latin America flows reshape the European cargo map

The growth is being driven not only by volume, but by the type of cargo moving across the Atlantic.

“Latin America presents an enormous opportunity for us, but also for air cargo generally, and the market’s growing. The economic development of the region is growing every year. The sophistication of the market and the development in countries like Peru is absolutely enormous, and the same thing is happening across other countries in Latin America,” Shepherd noted.

Recent performance data supports that trajectory. IAG Cargo recorded a 22 percent year-on-year increase in volumes from Latin America into Madrid in 2025, underpinned by strong perishables flows and rising demand for time-sensitive shipments. The pattern reflects a broader structural shift, as cargo networks adapt to more diversified sourcing and consumption patterns.

“We’re attracting new handling customers to our business in Madrid. We already have 10 handling customers and we’re about to bring in another airline to handle there. We move an enormous amount of our own freight through Madrid also, serving some of the biggest fashion retail customers in the world through Madrid into Latin America, as well as other markets,” said Shepherd.

Madrid’s role within that system is important. Its geographic positioning allows it to function as a natural bridge between Latin America and Europe, while its network structure enables onward distribution across the continent. But the real differentiation lies in how the hub is configured to handle the cargo itself. Inside IAG Cargo’s Madrid hub, the scale of those flows becomes tangible.

“Madrid is key between Latin America and Europe and we have 158 wide-bodies flying every week from Latin America to Madrid,” explained Armando Rodriguez Moreno, Head of MAD Hub Cargo Operations at IAG Cargo.

Those aircraft are increasingly filled with time-critical, temperature-sensitive goods.

“Perishables and e-commerce are the main product being transported,” he said.

Handling that cargo introduces a different set of operational pressures. Unlike general freight, perishables leave little margin for delay. “The biggest challenge is the temperature control that this type of product requires and a very quick transit time, which is key for them,” Moreno added.

The result is an operation built around speed and precision. Shipments are processed, inspected and moved onward within hours, not days. Seasonal peaks add further intensity. During key periods such as Valentine’s Day, flowers can account for as much as 40 to 50 percent of volumes moving through the hub. Alongside perishables, pharmaceuticals are an increasingly important component of the cargo mix.

“The pharma industry is very important for us. It requires quick transit times and also strong cold chain capabilities,” Moreno said.

That segment continues to grow steadily, both in volume and in operational complexity, reflecting wider trends across global healthcare logistics.

If cargo flows are changing, so too is the basis of competition between hubs. Scale alone is no longer sufficient, and specialisation is becoming more important. In Madrid, that specialisation is anchored in infrastructure designed specifically for sensitive cargo.

“The main differentiator for us is the perishable centre and also our constant climate centre,” Moreno explained, referring to recent investments that have expanded handling capacity and introduced dedicated temperature-controlled environments for both food products and pharmaceuticals.

This is not simply about facilities, but about how those facilities align with network design. While other European hubs may be more deeply integrated into Asia-Europe flows, Madrid occupies a different position.

“The London hub is more well-connected with Asia, while Madrid is better connected with Latin America,” he said.

A shift towards higher-value cargo

Underlying these developments is a broader change in what the industry is transporting. The growth in perishables and pharmaceuticals is part of a wider move towards higher-value, time-sensitive goods.

“The main driver is the demand for premium products – and this premium product demand is growing,” Moreno said, pointing to increasing volumes of higher-quality perishables entering Europe from Latin America.

That shift has implications beyond individual shipments. Higher-value cargo demands tighter control, greater visibility and more reliable transit times. It also changes the economics of air freight, placing greater emphasis on service quality rather than pure capacity. For operators, this creates both opportunity and pressure. Networks must be capable of handling more complex cargo, while maintaining the speed and reliability that customers expect.

As David Shepherd summarised: “We have a great operation in Madrid, which plays a critical role in connecting Latin America with Europe for our customers.”

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